Please ensure Javascript is enabled for purposes of website accessibility

Why Cision Stock Jumped Tuesday

By Daniel Sparks - Updated Oct 22, 2019 at 4:31PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The software company has agreed to be acquired. Here's what investors should know.

What happened

Shares of public relations software company Cision (CISN) climbed as much as 19.6% on Tuesday. As of 12:25 p.m. EDT, the stock was up 18.9%.

The stock's jump follows news that the company entered an agreement to be acquired by an affiliate of investment firm Platinum Equity. 

A chart showing a stock price moving higher

Image source: Getty Images.

So what

Cision, the owner of public relations platform PR Newswire, entered a definitive agreement with Platinum Equity to be acquired for $2.74 billion in cash. This translates to $10 per share -- a 34% premium over the stock's 60-day volume-weighted average price ending Oct. 21. The agreement has been unanimously approved by Cision's board.

"This transaction will provide shareholders with immediate and substantial cash value, while also providing us with a partner that shares in our commitment to customers and employees and can add strategic and operational value," explained Cision CEO Kevin Akeroyd in a press release about the deal.

Now what

The deal is expected to close sometime during the first quarter of 2020 and is "subject to approval by Cision Ltd.'s shareholders, along with the satisfaction of customary closing conditions and antitrust regulatory approvals, as necessary," Cision said.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Cision Ltd. Stock Quote
Cision Ltd.
CISN

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
328%
 
S&P 500 Returns
116%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/19/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.